Relationship between a high-performance work system and employee outcomes: A multilevel analysis

Abstract

Although research on high-performance work systems (HPWS) is increasing, there are few studies in which the focus is on whether and how firm-level HPWS affect individual-level employee outcomes. Using social identity theory, we examined the relationship between HPWS and employee outcomes, and the role organizational identification plays as a mediator in this relationship. We used a multilevel research design and collected data at the organizational and individual levels from a sample of 485 employees of 32 companies in Guangdong Province, China. We used Amos 17.0 and hierarchical linear modeling 6.08 software to examine our hypotheses and the theoretical model. Results showed that organizational identification fully mediated the relationship between HPWS and employees' job performance as well as that between HPWS and their turnover intention. Our findings provide new insights into the relationship between firm-level human resource management and individual-level employee outcomes, and highlight the importance of considering the implementation of HPWS practices to strengthen employees' identification with the organization and improve their performance.